Millennial Investors Want Perks and ESG Investing

The latest Spectrem Group report, “Millennial and Generation X Investors,” suggests these two generations are significantly more attuned to socially responsible investing than their older counterparts.

In fact, survey results show more than half of Millennial investors (52%) see the social responsibility of their investments as an important selection criteria, compared with less than 30% of WWII-era investors and 42% of Gen X investors.

The study also reveals that almost a third of Millennial investors (29%) expect their financial adviser to reward them with gifts or other favors in exchange for their recurring business. By contrast, less than one-in-ten Gen X investors (7%) expect these types of perks from their advisers. Of the minority of Millennials expressing this sentiment, the highest preference is for “a meal, tickets to a sporting event, socials or happy hours.” More than one in five of the small percentage of Gen X investors expecting a gift from their adviser would be interested in a gift for their pet.

“Advisers would be well-served to understand that these types of perks can be important ways to acknowledge the value of younger clientele,” the study concludes.

As Spectrem suggests, Millennial investors are also significantly more likely than their Gen X counterparts to favor texting or instant messaging as a way of communicating with their adviser, versus email or voice-to-voice phone calls. More than two-thirds of Millennial investors report they would be comfortable texting their financial adviser, compared to less than one-third of Gen X investors.

“In stark contrast with older generations, Millennial and Gen X investors are much more likely to make joint financial decisions with their spouses,” researchers explain. “Nearly three-quarters of Millennial investors make joint financial decisions with their partners, compared with less than two-thirds of Gen X investors. Just over half of Baby Boomer and World War II-era investors make joint financial decisions with their partners.”